We remain constructive on this stock. Not only does it have a neat 5-wave initial wave up followed by a 62% correction, but now the Department of Energy has decided to weigh in on the matter by announcing,last Friday, the purchase of 5 mln. barrels to replace the sale of an equivalent amount precisely a year ago, supposedly because the stuff is relatively cheap now. 5 mln. is about 1% of the amount in storage (above ground!) so negligible by any standard but not in the context of market manipulation. The timing is bound to boost the narrative around oil if only for a little while, perhaps soon we can expand the Fed’s mandate to include stable mileage. It has a good ring to it, stable prices, full employment and even mileage. With regard to oil we remain of the opinion that another leg up should occur before oil drops to new lows ( see chart below), as is now also predicted by the Maestro, Alan Greenspan , himself. This should provide support to PHX.

We did not get the triangle wave b, instead we got a clear a-b-c down for b (we think) so c up should get back up to , perhaps, $60.

By the way, if you suspect something nefarious is going on here you are barking up the wrong tree. The US is obliged, so they say, to buy back what was sold previously, within a year! So they are just fulfilling their obligations. How crucial that is becomes obvious when one considers that there are 4.1 BILLION barrels of oil salted away, so a drop of 5 MLN. barrels could easily jeopardize the US’ military and other capabilities.

Elsewhere the strategic reserves are estimated at 727 mlm. barels. Eitherway 5mln. matters little.

This is a subsidiary of Phoenix Technology Services, they drill horizontal and directional holes for the gas and oil industry. It does so here in Canada, in Albania and Russia. A good business in great places and with the appropriate, we hope, reference to Phoenix what can possible go wrong??

It dropped from $16.32 to $5.21 or $11.11 and it did so in a 5-wave structure (or a double zig-zag, a-b-c X a-b-c with each leg about $6). Next it goes up in 5-waves initially. That has to be the start of a new bull or 1/2 of an a-b-c correction Either way we need another leg up. A good initial target (for a correction) is 38% of the drop which in this case would take us to $9.43. Equality between the c and a legs gets us to $10.35. The 200 day moving average is presently at $12 and that is also where wave 4 of 3 resides. So close your eyes and buy it at $7.30 and wait six weeks and chances are that you will make 41%. Before doing anything , call your broker!!